qualified plan

An employer-sponsored tax-deferred employee benefit plan that meets the standards of the Internal Revenue Code of 1954 and that qualifies for favorable tax treatment. Contributions by an employer and an employee accumulate without being taxed until payouts are made at the employee's retirement or termination.

qualified plan by assignees should comply with the exclusive benefit rule if the foreign "home employer" (the organization that transfers assignees) or foreign "host employer" (the organization to which assignees are transferred) is a participating employer or in the same controlled group as one of the participating employers.

For purposes of applying annual deduction and contribution limits as well as for nondiscrimination testing purposes, current law limits the annual compensation of each participant that may be taken into account under a qualified plan to $170,000.

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